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Charlotte home prices keep rising – and demand isn’t slowing

U.S. home prices rose at the fastest pace in nearly 3 years, and Charlotte home prices climbed 6.1 percent in February from the same month last year, according to the most recent Standard & Poor's CoreLogic Case-Shiller national home price index report.
U.S. home prices rose at the fastest pace in nearly 3 years, and Charlotte home prices climbed 6.1 percent in February from the same month last year, according to the most recent Standard & Poor's CoreLogic Case-Shiller national home price index report. AP

Charlotte home prices climbed 6.1 percent in February from the same month last year, a report released Tuesday showed, in a sign that area homebuyers are vying for a limited number of homes on the market.

Nationwide, the Standard & Poor’s CoreLogic Case-Shiller national home price index increased 5.8 percent in February – the most in 32 months – as home sales remained robust.

“Housing and home prices continue to advance,” David Blitzer, managing director at S&P Dow Jones Indices, said in a statement.

“Other housing indicators are also advancing, but not accelerating the way prices are...There are still relatively few exiting homes listed for sale and the small 3.8 month supply is supporting the recent price increases.”

Home prices nationally rose 5.8 percent in February, the fastest pace in nearly three years. The cities with the biggest annual price gains in February were Seattle, Portland and Dallas.

The price gains come as mortgage rates stand slightly higher compared to a year ago. The average interest rate on a 30-year home loan was 3.97 percent last week, compared to 3.59 percent a year ago, according to mortgage buyer Freddie Mac.

Pat Riley, CEO of Allen Tate Companies, explains why Charlotte continues to face low supplies of homes on the market.

The combination of higher mortgages and home prices may eventually cool off demand. But for now, sales in Charlotte and other cities remain robust. In a report earlier this month, Charlotte Regional Realtor Association president Roger Parham said homes are “selling almost as quickly as they’re listed.”

The Case-Shiller index covers roughly half of U.S. homes, and tracks the value of single-family housing. The February 2017 data is the most recent available.

The Associated Press contributed to this story.

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